The Tribune

By ANNELIA NIXON

TRIBUNE Business Reporter

anixon@tribunemedia.net

HIGH-END boating demand remains under pressure from what a resort executive yesterday described as “excessive fees” even as Family Island hotels report encouraging Christmas and New Year bookings and signs of a stronger winter season.

Stephen Kappeler, managing director of Bimini Big Game Club Resort and Marina, said the continued absence of larger yachts is hurting the Bahamian tourism economy because these visitors are among the country’s highest-spending guests.

“The big thing that’s missing that stays this way is the boats over 60 [feet]. They’re not in The Bahamas. They’re not coming in any numbers at all,” Mr Kappeler said, attributing the decline to the higher fees imposed on larger vessels. “They’ve got money, but they’re just not going to pay it.”

Mr Kappeler said the Government’s failure to adjust mega yacht and large ship fees, along with charges such as fishing licence levies, is discouraging large pleasure vessels from visiting The Bahamas.

“They didn’t adjust the mega yacht fees,” he said. “The large ship fees did not get adjusted. And they’re charging things like fishing fees and things like that. These are pleasure boats coming with people who spend $7,000 a day. They’re not necessarily fishermen at all. It’s the wealthiest spender per capita.”

Mr Kappeler argued that the economic impact of losing these visitors extends far beyond marinas, as larger private vessels move between multiple islands and spend heavily on fuel, groceries, restaurants and other businesses.

“A cruise ship will come in and bring somebody who spends $30 a day on land,” Mr Kappeler said. “The private boaters will come in with their boat and a couple people on the boat, stay, buy gas, do whatever, spend up to $400 a day. These people got serious money.”

He added that the larger boat segment accounts for about 30 percent of his business, although Bimini’s proximity to South Florida means the resort also attracts significant numbers of smaller vessels. The larger yachts, Mr Kappeler said, often clear into The Bahamas through Bimini before travelling onward to destinations such as Exuma, Harbour Island, Abaco and Nassau.

“Ironically we’re penalising them. They are the greatest spenders for all these Bahamian cash registers,” Mr Kappeler said. “They’re buying the bread. They’re going to the grocery store. They’re buying fuel in large amounts. They’re spending in the gift shops, in the restaurants, because they can.”

Despite  concerns surrounding larger vessels, Mr Kappeler said demand for the upcoming Christmas and New Year holiday period is showing signs of strength. Bimini Big Game Club experienced its “best ever” Labour Day weekend in about four years, he said, with virtually every room occupied for several nights and significant boating activity at the marina. He said demand for the New Year’s period, from about December 26 through January 2, is also strengthening.

“We are right now experiencing stronger demand for what we call New Year’s Eve week,” Mr Kappeler said. “That Christmas week is always a little tougher. But it’s starting to pick up.

“This July and this August, we were ahead of last year’s July and August, but that’s because they just announced those fees. Now that they’ve been relaxed, it’s gotten small better. You know, there’s an increase.”

“We just need to see the relief for those bigger boats, and not charging them commercial fishing licence fees just because they’re big boats, just so all the pricing can be fair.” 

Other Family Island operators are also reporting solid holiday prospects, although booking patterns vary by property. Molly McIntosh, a top management executive at Bluff House Beach Resort and Marina in Green Turtle Cay, said bookings for the period immediately after Christmas through January 4 are slightly behind last year but remain strong.

“My first thought is that they’re not as good,” Ms Mcintosh said. “I think I’ve only got a couple rooms less just for that week, the day after Christmas until like January 4. I think we’re pretty well booked up.”

She said the property is currently closed for its annual maintenance period, with work underway on the pool, rooms and other areas. The resort plans to increase marketing ahead of the holiday season through the Bahama Out Island Promotion Board and partnerships with smaller airlines. Ms McIntosh said the recent easing of the boating fees had produced a noticeable improvement in marina activity.

Harbour Island is also seeing strong holiday demand, with Juanita Percentie, proprietor of Tingum Village Hotel, disclosing that Christmas and New Year bookings are “good” despite the current seasonal slowdown.

“Right now, it’s slow because it’s off season,” Ms Percentie said, pointing to rainy weather as one factor suppressing current travel demand. “But we’re looking good for the holidays. Looking great.”

However, she said Harbour Island faces a different problem: Insufficient room inventory. “We don’t have enough rooms,” Ms Percentie said. “Harbour Island has outgrown supply and demand. Our guests are unhappy sometimes because they can’t get in for the length of days that they want.”

In Andros, Small Hope Bay Lodge is also expecting a busy Christmas and New Year period. Operator Jeff Birch said the property is “busy for Christmas and New Years” as it typically benefits from demand from families seeking an all-inclusive holiday experience.

“It’s just that we’re a family all-inclusive,” Mr Birch said. “We’re a family resort, and I think families and people look for our ambience.”